Leave It to the Pros, Get Into a Fund of Funds


Can you feel your stomach wrenching? Even on the day of President Barack Obama's inauguration -- a day many had hoped for a nice pop in the markets, financial stocks went into freefall, sending the Dow tumbling below the 8,000 mark to record its worst Inauguration Day loss ever.

Such large swings are not for the faint-hearted, so if you want to enter the stock market, an expert on CNBC Asia Pacific's "Protect Your Wealth" said to do so, with the help of a pro.

Get Professional Help

"One piece of advice is don’t do it at home," said Ajay Kapur, global strategist at Mirae Asset Securities. "If you can pay for the advice, one of my ideas, is that you should talk to your financial adviser, and try to get into a fund of funds."

While fund of funds, like many other investment vehicles, produced dismal returns in 2008, Kapur noted that they outperformed the broader equity market, falling 18%-20% in comparison to the 40%-50% declines seen in the stock market.

He also added that value stocks and high-grade bonds are attractive plays in today's volatility. But he prefers to invest in them via exchange traded funds (ETFs). Lastly, Kapur explained why he is bullish on China. "I think China, with its reflationary policies should do better than the other markets. And again, there’s an ETF for that too. "

Comments? Questions? Send them in here.

Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."